AXA ROSENBERG US EQUITY ALPHA FUND SIMPLIFIED PROSPECTUS DATE 20 June 2007

Transcription

1 AXA ROSENBERG US EQUITY ALPHA FUND SIMPLIFIED PROSPECTUS DATE 20 June 2007 This Simplified Prospectus contains key information in relation to AXA Rosenberg US Equity Alpha Fund (the Sub-Fund ), which is a sub-fund of AXA Rosenberg Equity Alpha Trust (the Fund ). The Fund is structured as a unit trust and was authorised on 17 September 1999 by the Irish Financial Services Regulatory Authority (the Financial Regulator ), under the European Communities (UCITS) Regulations, 2003, as amended. The Sub-Fund was authorised by the Financial Regulator on 17 September The Fund is managed by AXA Rosenberg Management Ireland Limited (the Company ), a company registered in Ireland under company registration number The Company has appointed AXA Rosenberg Investment Management Limited as investment manager (the Investment Manager ) of the Fund. Potential investors are advised to read the full Prospectus dated 20 June 2007 (the Full Prospectus ) and the supplement to the Full Prospectus for the Sub-Fund dated 20 June 2007 (the Supplement ) before making an investment decision. A list of the current subfunds of the Fund is set forth in the appendix hereto. The rights and duties of the investor as well as the investor s legal relationship with the Sub-Fund are laid down in the Full Prospectus. (Words in this document have the same meaning as given to them in the Full Prospectus). The Investment Manager may appoint sub-investment managers to provide investment management and advisory services in respect of part or all of the assets of the Sub-Fund. The Base Currency of the Sub-Fund is US Dollars. Investment Objective: Investment Policy: The investment objective of the Sub-Fund is to provide long-term capital appreciation with a total return greater than the return of the S&P 500 Index on a rolling three-year basis. The Sub-Fund will primarily (meaning not less than 75% of the Net Asset Value) invest in equity securities traded principally on Regulated Markets that the Manager has identified as undervalued and that are issued by companies that have their registered office or carry out a predominant portion of their economic activity (meaning not less than 51%) in the US. It is intended that the Sub-Fund will be substantially fully invested in such equity securities. During any period when the Sub- Fund is registered in Switzerland, the Sub- Fund will invest not less than two-thirds of its total assets in such equity securities. The S&P 500 Index is the equity index prepared by Standard & Poor s generally comprised of 500 of the largest US companies by market capitalisation. The Sub-Fund may use certain financial derivative instruments, such as options, swaps, swaptions, warrants, forwards and futures contracts for the purposes of efficient portfolio management.

2 Risk Profile: The following risk factors apply to the Sub-Fund: The investments of the Sub-Fund will be subject to market fluctuations. There is no assurance that any appreciation in the value of Investments will occur, or that the investment objective of any Sub-Fund will be achieved. The value of investments and the income derived therefrom may fall as well as rise and investors may not recoup the original amount invested in a Sub-Fund. Credit Risk: Each Sub-Fund will be exposed to a credit risk on parties with whom it trades and may also bear the risk of settlement default. The risk also extends to securities lending activities of the Sub-Fund. Currency Risk: Currency fluctuations between an investor s currency of reference or the currency of Investments and the Base Currency of the relevant Sub-Fund, may adversely affect the value of an investment in one or more of the Sub-Funds. At no time can a Sub-Fund hedge more than 105% of its Net Asset Value against currency fluctuations. This hedging currency strategy may substantially limit Unitholders of a particular Class if that Class currency falls against the Base Currency and/or the currency in which the assets of the Fund are denominated. The costs and gains/losses arising as a result of hedging currency will accrue solely to the relevant Class. Investment Risk: The value of the Units in a Sub-Fund may increase or decrease depending on market, economic, political, regulatory and other conditions affecting such Sub-Fund s Investments. Investment in Units in a Sub-Fund is more volatile and risky than some other forms of investment. Derivatives: Certain Sub-Funds, where stated in the investment policy, may invest in financial derivative instruments for direct investment purposes. The types and degrees of risk associated with such techniques and instruments vary depending upon the characteristics of the particular instrument and the assets of a Sub-Fund as a whole. Use of these instruments may entail investment exposures that are greater than their cost would suggest, meaning that a small investment in derivatives could have a large impact on a Sub- Fund s performance. Emerging markets: The Fund may invest in the securities of issuers located in emerging market countries. Emerging market countries include: (i) countries that are generally considered low or middle income countries by the International Bank for Reconstruction and Development (commonly known as the World Bank) and the International Finance Corporation; or (ii) countries that are classified by United Nations or otherwise regarded by their authorities as emerging, or (iii) countries with a market capitalization of less than 3% of the Morgan Stanley Capital World Index. Investments in companies domiciled in emerging countries may be subject to potentially higher risks, making these investments more volatile, than investments in developed countries Taxation Risk: Potential investors attention is drawn to the taxation risks associated with investing in a Sub-Fund of the Fund. A complete description of risk factors is set out in the Full Prospectus. Past performance is not necessarily an indicator to future performance. 2

3 Performance Data Return (%) 40 AXA Rosenberg US Equity Alpha Fund (Class A - USD) Fund Benchmark YTD06* Calendar years (inception date: 30th September 1999) Annualised return* (%) 3 Years 5 Years since inception Fund benchmark As at 31 st March 2006 Notes: Benchmark prices are obtained from the relevant benchmark provider. NAV are calculated by the Administrator. Fund performance is shown net of fees and is calculated on a NAV to NAV basis. If a fund is not priced due to a market holiday, the latest fund's business date and NAV are taken. Performance figures for Fund and Benchmark are shown in the fund's base currency as indicated. Profile of a Typical Investor: Distribution Policy: Suitable for investors seeking a total return greater than the S&P 500 index over a rolling three year basis The Directors of the Company are empowered to declare dividends on any Class of Units in respect of the Sub-Fund. Generally, it is intended that the Classes of Units shall be accumulating Classes and, therefore, it is not intended to distribute dividends to Unitholders in these Classes. In the absence of such a declaration, the net revenue from these Classes will be accumulated and reinvested on behalf of Unitholders. However, the Directors may create Classes of Units that are distributing Units. In respect of these Units, unless otherwise stated, dividends will be paid out of the net revenue of the Sub-Fund (i.e. all interest dividends and other income less the Sub-Fund s accrued expenses) and will be paid by CHAPS, SWIFT or telegraphic or federal wire transfer to the bank account indicated on the application form for the relevant Units or as otherwise advised or agreed between the Manager and the Unitholder. Distribution dates, where applicable, shall be as set out below. Class A (US$) Class A ( ) 3

4 Fees and Expenses: Class B (US$) Class B ( ) Class A ( ) Hedged Class B ( ) Hedged Class E ( ) Hedged Class M Class R Annual Operating Expenses: Distributing (dividends declared annually) Administration Fee: 0.03% on the first US$200 million of average net assets per annum, 0.02% on the next US $300 million of average net assets per annum and 0.01% of average net assets per annum above US $500 million and a transfer agency fee of US $10 for each automated, or US $25 for each manual, transfer agency transaction including each subscription, redemption, transfer, conversion and distribution. Trustee Fee: Up to 0.01% of average net assets per annum. Out of pocket expenses of Trustee, Administrator and Investment Manager are paid out of the Sub-Fund s assets. Unitholder Expenses and Investment Management Fees Units Preliminary Early Management Distribution Charge Redemption Base Fee Fee Charge Class A (US$) 0.7% Class A ( ) 0.7% Class B (US$) 4.5% 1.35% Class B ( ) 4.5% 1.35% Class A ( ) Hedged 0.75% Class B ( ) hedged 4.5% 1.4% Class E ( ) hedged 1.4% 0.75% Class M Class R 4.5% 1.5% Total Expense Ratio: Fiscal Year: 1 April March 06 Units Class A (US$) 0.83% Class B (US$) 1.48% Class B ( ) 1.47% Class A ( ) Hedged 0.88% Class B ( ) hedged 1.53% Class E ( ) hedged 1.47% Class M 0.13% Class R 1.63% Portfolio Turnover Rate: Fiscal Year: 1 April March 06 AXA Rosenberg US Equity Alpha Fund % Taxation: The Sub-Fund is resident in Ireland for tax purposes and is not subject to Irish taxation charges on income or capital gains. No Irish stamp duty is payable on 4

5 the issue, redemption or transfer of Units in the Sub-Fund. Unitholders and potential investors should consult with their professional advisers in relation to the tax treatment of their holdings in the Sub-Fund. Publication of Unit Price: How to Buy/Sell Units/Shares: The net asset value per Unit of the Sub-Fund is published daily on the following website: and is available from the office of the Administrator. You can buy, sell and switch Units on any Dealing Day directly from the Administrator: State Street Fund Services (Ireland) Limited Guild House Guild Street Dublin 1 Ireland Tel Fax (Hours of business 9.00am to 5.00pm (Irish time) (Mon Fri) There are different minimum subscription, redemption and holding amounts for each Class of Unit. The minimum amounts set out below may be lowered or waived for subscription and / or redemptions made through any discretionary portfolio service or collective investment undertaking offered or managed by the Investment Manager or its affiliates. The minimum initial subscription amounts, minimum redemption amounts and minimum subsequent subscriptions amounts are as follows: Units Minimum Initial Investment/ Minimum Holding Minimum Redemption Amount Minimum Subsequent Subscription Class A (US$) Class A ( ) Class B (US$) Class B ( ) Class A ( ) Hedged Class B ( ) Hedged Class E ( ) Hedged Class M Class R Stg 700,000 US$5,000 5,000 1,000,000 5,000 5,000 Stg 3,500 Stg 700,000 US$2,000 2,000 1,000,000 2,000 2,000 Stg 1,500 Additional Important Information: Investors should refer to the Full Prospectus and the Supplements for information on the different Classes of Units. Directors of AXA Rosenberg William Wiebe Management Ireland Limited: David Cooke Jennifer Paterson David Shubotham Rajiv Vyas Martin Braund Catherine Adibi Trustee State Street Custodial Services 5

6 (Ireland) Limited Administrator, Registrar and Transfer Agent Investment Manager Promoter Auditors Sponsoring Broker Legal Advisers to the Company Competent Authority State Street Fund Services Ireland Limited AXA Rosenberg Investment Management Limited AXA Rosenberg Investment Management Limited PricewaterhouseCoopers Chartered Accountants Goodbody Stockbrokers William Fry Irish Financial Services Regulatory Authority Additional information and copies of the Full Prospectus and periodic reports may be obtained (free of charge) from the Administrator. 6

7 APPENDIX AXA Rosenberg US Equity Alpha Fund AXA Rosenberg UK Equity Alpha Fund AXA Rosenberg UK Small Cap Alpha Fund AXA Rosenberg Pan-European Equity Alpha Fund AXA Rosenberg Pan-European Small Cap Alpha Fund AXA Rosenberg Europe Ex-UK Equity Alpha Fund AXA Rosenberg Europe Ex-UK Small Cap Alpha Fund AXA Rosenberg Eurobloc Equity Alpha Fund AXA Rosenberg Japan Equity Alpha Fund AXA Rosenberg Japan Small Cap Alpha Fund AXA Rosenberg Pacific Ex-Japan Equity Alpha Fund AXA Rosenberg Pacific Ex-Japan Small Cap Alpha Fund AXA Rosenberg Global Equity Alpha Fund AXA Rosenberg Global Small Cap Alpha Fund AXA Rosenberg Global Ex-UK Equity Alpha Fund AXA Rosenberg US Enhanced Index Equity Alpha Fund AXA Rosenberg Pan-European Enhanced Index Equity Alpha Fund AXA Rosenberg Japan Enhanced Index Equity Alpha Fund AXA Rosenberg Eurobloc Enhanced Index Equity Alpha Fund AXA Rosenberg All-Country Asia Pacific Ex-Japan Equity Alpha Fund AXA Rosenberg All Country World Equity Alpha Fund AXA Rosenberg Global Emerging Markets Equity Alpha Fund AXA Rosenberg Emerging Markets Asia Equity Alpha Fund AXA Rosenberg Emerging Markets Europe Equity Alpha Fund AXA Rosenberg Emerging Markets Latin America Equity Alpha Fund 7